Energy Drink Market Analysis

Energy Drink Market Analysis Introduction Background of the energy drink market Currently, the beverages industry shows a strong growth, and the energy drinks industry particularly expects further growth in the near future. Caffeine, acting as the most common stimulant, is generally the primary active component of energy drinks. Being able to provide the consumers quick refreshment and a feeling of highly energetic, the energy drinks give consumers another option to choose besides the traditional coffee and tea. Energy drink consumption has continued to gain in popularity since the 1997 debut of Red Bull, the current leader in the energy drink market. Drinking energy drinks is a popular practice among college students for a variety of situations. The energy drink consumption patterns among college students, prevalence and frequency of energy drink use for six situations, namely for insufficient sleep, to increase energy generally, while studying, driving long periods of time, drinking with alcohol while partying, and to treat a hangover. Although for the majority of situations assessed, consumers drink one energy drink with a reported average frequency of at least once per week. Company and Product Description Bada Company is s an independent energy drink manufacturing company located in a college town, which is also a tourist destination in the holiday season. The only product that we plan to launch in the start up phase is Bada Bala energy drink, which is designed to be packed in 350ml plastic bottle. It will be a new precedent for local standards and set up the new trend mainly among college students, which are also our target consumers. Market analysis and strategy Our company plans to launch only one kind of product in the start up phase because we really want to make sure that our business can achieve a steady increase in sales and gradually expand the popularity and market shares in this region. Since our company chose not to develop in an aggressive way and still maintain our edge in the local market, some key factors for our Bada Bala energy drinks success are summarized as following: Prime location for our product to break into the market .Located in a university town, our company have a strong and stable customer base and with more universities choosing to establish their campuses in this university town, the customer base will be growing in a steady pace. The visiting tourists in the holiday season will make up the decline demand from college students in the holiday season. Unique and high-quality product at reasonable prices. Our company will incorporate great product at lower expense, thus stick to keep an idea margin while catering to our customers demand. While energy drinks are nothing new, we will distinguish ourselves and focus more on the college students and at the same time emphasize on local taste to attract the visiting tourists in the holiday seasons. Successful taste testing with an excellent result among our target consumers. Based on their feedback, those university students are eager to have our Bada Bala energy drink as their first choice when they need an energy drink to boost their energy. Because of the student population being the core target markets, heavy sales and marketing will not be needed. Rather, our company will emphasize word-of-mouth advertisement, along with promotions broadcast on campus. During the first two weeks of launching the Bada Bala energy drink, flyers with coupons will be passed around campus for notification. We have allotted a small amount for any needed advertising each month, and prepare a promoting program when the tourists arrive here in the holiday season. Once the production begins, the revenue generated is expected to the financial source for reproduction. Financial plans Financial objective Generate  £1,200,000 of sales in year 1, with an 15% growth rate for the next two years. Realize a gross margin of at least 50% each year. Show a net profit of  £600,000 by the end of the year 1. We have already coordinated with local distributors to set up accounts for purchases and repayment. Investment plan The start-up costs of the production of Bada Bala Energy Drink will incorporate the costs such as of machinery and equipment for manufacturing, setting up selling and distribution channels, staff hiring, and other necessary expenses to start operation. At first year of start up phase, there are no plans for expanded business scales or introduce other new products. As business continues, we will re-evaluate to see if there is a part of the market that could be better assisted and adjusted. Costs have been allocated for 1-month supply of basic purchases raw materials, since general inventory turnaround is between 15 and 20 days. We realize that the 1-month time frame will allow for a small inventory to be maintained during opening months. Based on that, we will be able to determine rate for future replenishment. The plant site on the 50,000 square foot building has been confirmed and only minor renovations will be needed to set up the production condition for Bada Bala Energy Drink. The following sections will outline the important financial assumptions, break-even analysis, cash flow budget, budget balance sheet, budget income statement and key financial indicators and ratios. Sales forecasts on our product The market will vary greatly based on two factors: the academic schedule of university students and the travel schedule of the visiting tourists. The academic schedule will not affect the consumption too much, except for their will be a rise in consumption on the exams week and on occasions like sports meeting. Summers will tend to decrease the customer base of students as many choose not to attend school during this time. But the increasing tourist population will be the main force of our consumers during the time the students are away from the town. Thus, only some minor adjustments in production plan will be needed. Based on careful market analysis and calculations, we expect around 100,000 bottles to be sold on a monthly base in first year of the start up phase Based on the above forecasting sales, chart and tables of further financial analysis are enclosed in the appendix of this report. Return on investment At the start up phase, the monthly net profit from sales is expected to be  £50,000, with the monthly total sales being  £100,000 and the total costs of sales being £50,000. The sales margin is calculated to be 50 % by dividing the  £50,000 monthly net profit from sales by the £100,000 monthly total sales revenue. Our business will achieve realizable revenue of  £1,200,000 after one year of operation, and the profits will rise to £600,000 pre-tax. This represents an earning margin of 50 % pretax. The profits generated will be used to expand the scale gradually in the second year, while continue to run the business in a prudent strategy. Having the capital turnover being 3.2%, and the return on sales being 50% on a yearly base, with the return of investment is estimated to be 0.17%. Break-even analysis According to the estimate based on the market research, our company decides that roughly Bada Bala Energy Drink 100,000 bottles are sold on a monthly base, that is a profit revenue of £100,000 at monthly sale. The break-even point quantity will be reached at the sales volume of 23,077 bottles, given the Total fixed cost of £15,000 per month, consisting of the monthly fixed factory overheads of £5,000,000 , the monthly fixed selling and distribution overheads of  £400, 000 , and fixed administration overheads of £600,000. The variable costs per unit, consisting of the direct materials per unit of  £0.15 and direct labor per unit of $0.2, together totals to be £0.35 . Thus, the total variable cost on a monthly base is expected to be  £35,000 and the total monthly costs is  £50,000. Cash flow plan The cash budget is based on cost and revenue estimates. Monthly sales are the largest indicator. As discussed and explained above, the seasonal variations do not affect much on the sales. We want to finance the future growth of our company mainly through cash flow. Although playing it safe means we will have to increase the production scale slowly and gradually grab the lion market share, we think this strategy suits us very well because we want to the business have gradual growth without much financial risks. Summary Our advantage of located in the university town, together the careful financial planning, the precise market concentration and the rather modest developing strategy all serve as an competitive edge for success in this energy drinks manufacturing field. The earning margin of 50 % pretax and healthy cash flows that generated speak for itself and lead to a promising and attractive returns

Mercantilist Relationship Between the American Colonies and the British Government Essay

Mercantilism is an economic policy and theory where the government has complete control of trade, both foreign and inside boundaries. This policy was dominant during the 16th, 17th, and late 18th centuries, it demanded a positive balance of trade between the countries it was involved with. There were many policies that were within the theory based upon mercantilism including, building a network of overseas colonies and forbidding them to trade with other nations, forbidding trade to be carried in foreign ships, export as a trade barrier using domestic goods and services competitive against imports, and restricting domestic consumption with non-tariff barriers to trade. The British government established a mercantilist relationship with the American colonies that was to its benefit until 1763 and then the relationship no longer was of economic benefit to the British crown. Prior to 1763 the colonists had no choice but to go along with Parliament’s right to take actions on their behalf and the predominance of Britain’s economic benefits over their personal ones. Seven Years’ War was the war that altered the parliaments actions, had been intended to regulate trade and nothing else, Parliament’s arrangements began to conflict with the colonists’ interests. This caused the colonies to grow and thrive, by the time the British realized this Americans had already established lucrative trade with other countries. Britain became more aware of this growing â€Å"problem† and began to keep a close eye on the colonies and implemented regulatory policies, the British instituted a series of laws of trade and navigation known as the Navigation Acts. The purposes of these acts were to limit colonial trade to the British only. For this to be accomplished all trading to be done involving the colonists was to be on either English vessels or colonial-built vessels, therefore, if colonists planned to trade with other nations all of their goods had to first be shipped to England. This gave the British the chance to get a hand on the items being traded and to collect revenue from taxation before the products were traded. Another limitation that was set on the colonies was that in order to trade products such as tobacco, sugar, and cotton it had to be done with the British only. When the British would notice the colonies beginning to make profit they would add the product that was causing the increase in revenue to the list of products only to be traded with them. Although there were many restrictions placed upon the colonies, they did not cause as much damage as Britain may have hoped. Benjamin Franklin answered when asked, â€Å"I have never heard any objection to the right of laying duties to regulate commerce; but a right to lay internal taxes was never supposed to be in Parliament, as we are not represented there†. There were even some benefits even to having these regulations, such as a built in market for raw products that they had and the British did not rigidly enforce the trading regulations that were set. Following Great Britain’s achievement of French territory in North America after the end of the French and Indian War allotted the Proclamation of 1763 in October of 1763. The purpose of the proclamation was to establish Britain’s new North American Empire and to stabilize associations with Native North Americans through regulation of settlement, trade, and land purchases. The proclamation kept certain lands for the Indians and prevented the colonies from settling inland. The colonies wished to expand their territory inlands but with the Proclamation of 1763 they were unable to do so, causing massive amounts of interest conflicts. The British seemed to be enforcing this proclamation more so than any other laws placed on the colonies before. Troops were stationed along the frontier to give the colonists’ no control over attempting to expand their population inland. The colonies feared for overpopulation and crowded cities along the coastline. It appeared that the break down of this mercantilist relationship between the United States colonies and Britain along with the split of America from the British Empire was unavoidable. Before the French and Indian war, Britain was having a hard time keeping up with and maintaining regulations that they had placed upon the colonies. The trade laws were inadequately implemented and the colonies were able to go about their own political and economic systems independently. But, with the close of the war Parliament concluded the time of this neglect of enforcement and became more dominate with the colonies in order to reestablish complete control over their trade. Pervious laws that were established to benefit Britain were enforced harshly and new laws were also applied to further benefit the British. This led to animosity between Britain and the colonies because the colonies experienced economic independence for too long a period causing the colonists to have no desire to return to how things used to be. The aggressive application of the Navigation Act to the colonists subdued their manufacturing operations and increased resentment against the British Parliamentary. The severe enforcement of these laws led to inflation and alienation in the colonies, neither of which benefited the British Empire. During this time of strict enforcement there were many more laws and acts placed upon the colonies to restrict their trade and growth. Parliament passed the Sugar and Molasses Act trying to bring the colonies in line with regard to payment of taxes. The Sugar Act reduced the rate of tax on molasses and listed more foreign goods to be taxed including coffee, wines, sugar, and various other goods. The tax on caused the instantaneous deterioration in the rum industry in the colonies. This interrupted the economy in the colonies because it reduced the markets to which the colonies could sell and the amount of currency available to them for the purchase of British manufactured goods. This act, and the Currency Act, set the stage for the revolt at the imposition of the Stamp Act. The Stamp Act of 1765 was a direct tax on documents and articles, this act directly affected all colonists. The law required a stamp to be placed on all printed materials, including legal documents, almanacs, pamphlets, and newspapers. Although this affected all colonists, lawyers, clergymen, and printers felt the wrath of this act the most. Benjamin Franklin stated â€Å"There is not gold and silver enough in the colonies to pay the stamp duty for one year†. The before and after of this act set in stone the perceived idea that the mercantilist benefits of the relationship between the colonies and Britain may have run its course. After debate about the collection of taxes due to the Stamp Act was the Quartering Act of 1765. The Quartering Act was part of the intolerable acts; the purpose of this act was only to take back hold of the colonies. The act violated the Bill of Rights, which forbids taxation without representation and the raising or keeping of a standing army without the consent of Parliament; colonies disputed the legality of this Act. In his first speeches in Parliament, Camden said, â€Å"taxation and representation are inseparable; this position is founded on the laws of nature; it is more, it is itself an eternal law of nature; for whatever is a man’s own, is absolutely his own; no man has a right to take it from him without his consent, either expressed by himself or representative; whoever attempts to do it, attempts an injury; whoever does it, commits a robbery; he throws down and destroys the distinction between liberty and slavery. Taxation and representation are coeval with and essential to the constitution†¦Ã¢â‚¬  If the soldiers outnumbered the housing available the colonies were expected to pay the cost of housing and feeding the troop, after the arrival of the troops New York refused to pay for supplies causing the troops to have to stay aboard their ships. Even after attempts to revise the Stamp Act, New York still resisted which led to the repeal of this act and the Stamp Act. With no doubt it seemed that violent hostility would prevail even with any effort to change the Acts making it almost impossible for Britain to establish any hope for a beneficial relationship with the colonies. The steady resistance to the Stamp Act led to it being repealed, which cost the British, â€Å"Suppose a military force sent into America; they will find nobody in arms; what are they then to do? They cannot force a man to take stamps who chooses to do without them. They will not find a rebellion; they may indeed make one. † This repeal showed the colonists that their resisting the act worked and would put fire to their future revolts considering this worked for them. The British were losing money now and the colonies did not seem to be hurt as badly as would have been hoped by the British. To down play the win that the colonies had just accomplished Parliament set out another act, the Declaratory Act, to serve as a punishment. The Declaratory Act asserted that Parliament â€Å"had, hath, and of right ought to have, full power and authority to make laws and statutes of sufficient force and validity to bind the colonies and people of America †¦ in all cases whatsoever†. In the context and the word choice in which this was written shows that the act was intentionally clear-cut and to the point. Parliament had the upper hand and the absolute power to make laws and changes to the colonial government, â€Å"in all cases whatsoever†. Caught up in attempting to strip the colonies of their freedoms in order to prevent them from creating a profit, the British were losing money and quite frankly, running out of it. In one final attempt to gain back control of the colonies and make their relationship work Parliament passed the Townshend Act. A colonist identified as Brutus argued against that assumption, stating, â€Å"Nothing can be more flagrantly wrong than the Assertion of some of our mercantile Dons. John Hancock adds, â€Å"Taxes equally detrimental to the commercial interests of the Parent country and the colonies are imposed upon the People, without their consent; Taxes designed for the Support of the Civil Government in the Colonies, in a Manner clearly unconstitutional, and contrary to that, in which ’till of late, Government has been supported, by the free Gift of the People in the American Assemblies or Parliaments; as also for the Maintenance of a large Standing Army; not for the Defiance of the newly acquired Territories, but for the old Colonies, and in a Time of Peace. This testimony written in a letter was tremendously effective in the efforts to abolish this act placed upon the colonies; there were also the Letters from a Farmer in Pennsylvania, which had its influence on the topic as well. There were twelve letters that were widely read and reprinted throughout the thirteen colonies, and were a major factor in attempting to unit the colonists against the Townshend Acts. Dickenson, the farmer, acknowledged the great power that the Parliament had in concern for the whole British Empire but argued that the taxes that were given to the colonies were for purpose of their own personal gain in revenue rather then what was stated in the books of the acts being for purpose of trade only. Dickinson foresees the possibility of future conflict between the colonies and Great Britain, but urges against the use of violence, â€Å"If at length it becomes undoubted that an inveterate resolution is formed to annihilate the liberties of the governed, the English history affords frequent examples of resistance by force. What particular circumstances will in any future case justify such resistance can never be ascertained till they happen. Perhaps it may be allowable to say generally, that it never can be justifiable until the people are fully convinced that any further submission will be destructive to their happiness. † The colonies boycotted this idea, their boycott, although it failed, gave them the strength to continue to not follow the acts that the Parliament required of them. The British had no way to enforce the collection of taxes so Britain had no choice but to repeal the Townshend Act. Britain was completely unstable and given this, the mercantilist relationship was coming to an end between the United States colonies and the British; the Tea Act would create the breaking point for this relationship. â€Å"An act to allow a drawback of the duties of customs on the exportation of tea to any of his Majesty’s colonies or plantations in America; to increase the deposit on bohea tea to be sold at the India Company’s sales; and to empower the commissioners of the treasury to grant licenses to the East India Company to export tea duty-free. The Tea Act of 1773 caused in turn the Boston Tea Party, which aggravated the British so greatly that they delivered a punishment act. The punishment acts were called the Coercive Acts and also, along with other acts, became part of the intolerable acts the British had placed upon the colonies. The Boston Port Act, The Massachusetts Government Act, The Administration of Justice Act, The Quartering Act, and the Quebec Act were all placed in order for Britain to again attempt to take control over the colonies. The restrictions placed on the colonies by these acts included the closing of the port of Boston, limited the meetings to one meeting per year, allowed the governor to move trails, and attempted to house the British solders. This out lash of over bearing authority over the colonies became known as the main reason that the mercantilist relationship could not continue. Britain’s attempts of harsh leadership and the lack of economic opportunities became great enough to continuously push the colonies away and gave them reason to revolt and not comply. As years passed the interests of the colonies and British began to not be similar in any ways, causing conflicts. The colonists educated themselves in ways that the British had not expected, giving the colonies the upper hand in knowing what they deserved and what was being taken from them. There were no longer any benefits to having a relationship with Britain and the colonists were well educated on this fact and showed their feelings on this aspect in many ways. The mercantilist relationship was no longer making a profit for the British Crown or bringing benefits to anyone; it was causing them to lose money. This loss was apparent after the downfall of both the economic systems after the French and Indian War in 1763.

Recommendations and Scope for Further Research Essay

This research was broad based, involving multi dimensional study of all possible factors influencing the Personal Market in general and Small Car Market in particular. There are very important findings related to influence of socio-economic issues of Indian middle class, infrastructural issues like development of roads, government policies, price and cost of running and maintaining the car etc. Performance of Tata Motors Nano car, which is the smallest car, in the small car segment, and was positioned to meet the requirement of a spatial segment of Indian buyer was also studied extensively. 6. 1 Findings and Conclusions Major findings and conclusions drawn from the study are listed below -1. 71 percent of respondents have shown their preference towards low engine capacity cars to get higher fuel efficiency. It shows that in future only cars giving higher fuel efficiency will be preferred by Indian consumers. . 73percent of the respondents have shown their preference toward small cars as due to increased traffic and congestion on roads. As vehicle population is increasing continuously and size of city roads started appearing narrow, it can be concluded that small cars will prove sustainable in the future. 3. 74 percent of respondents have shown their preference towards small cars due to parking convenience of roads. In cities due to phenomenal increase in number of vehicles, parking is proving to be a big problem. Parking of small cars is a bit easy and therefore, in future people are likely to prefer small cars. 210 4. In recent past car manufacturers have launched a number of models of small cars with comparable features of big cars, consequently small car owners can now enjoy all these features in small cars also. In all 73 percent of respondents have expressed their happiness due to this reason endorsed the purchase of small car. 5. In India still personal disposable income of majority of respondent is not so high that they can afford to buy a big car and therefore, 71 percent of the total respondents have expressed their opinion that their disposable income permit them to buy only a small car and thus small cars are going to be sustainable in Indian car market. 6. In India due to increase in literacy rate and also desire to lead a comfortable life have induced the people to observe small family norm, which can easily be accommodated in small cars, the of choice people is, therefore, shifting towards small cars. 0 percent of total respondents have expressed the view that small car is good for them as they have small family. 7. 70 percent of the total respondents have expressed their opinion that they prefer the small cars as repair facility is available easily and next to their door for the repair of the same. 8. In past few years the number and percentage of women in employment is increasing staidly. Such women employee prefers the small cars due to variety of reasons. 76 percent of the total respondents have expressed their agreement to the fact that increased women employment has boost the sale of small cars. As this trend is going to persist, the future of small car is bright. 9. Increased affluence and easy availability of loans and finance facilities have led to many two wheeler users to buy their first car which is normally a small car. This has made the small cars sustainable in Indian car market. 78 percent of total respondents have endorsed this fact. 10. In past few years urban as well as rural affluence has increased. This has boosted the trend of urbanization. This in turn induces the people to buy 211 ars. In all 77 percent respondents are of the opinion that growing urban population has boost the market of small cars in India. 11. In past one decade a phenomenon improvement has taken place in the road network. This has induced the sale of small cars in India. 81 percent of the total respondents are of the opinion that improved conditions of roads even in small cities have led to increase in demand of small cars. 12. Government of India has formulated such policies which stimulate the sale of small cars. 2 percent of total respondents are of the opinion that favorable government policy has boost the sale of small cars. 13. Price of the cars as well cost of spares, parts and component also govern the choice of a car. Normally price of small cars as well cost of spares, parts and components are comparatively low and affordable. Therefore, people prefer to buy small cars. This fact was endorsed by 74 percent of the total respondents. Thus it appears that small cars are going to be sustainable in Indian market. 14. The cost of repair and maintenance is comparatively very low in case of small cars. This also remains one of the considerations in forming the decision to buy a car. 83 percent of the total respondents are of the opinion that lower cost of repair and maintenance has influenced their decision to buy a small car. 15. Government levies taxes on small cars by low rate and rate of insurance of small cars is also very low as compare to big cars which are higher priced, therefore large number of people opts for purchase of small cars. A majority (68%) of the respondents have shown their agreement towards this. 16. About 3/4th of the total respondents are of the opinion that small cars are still preferred choice of Indian consumers therefore, it can be concluded that small cars will be sustainable in Indian car market. 17. 77 percent of the respondents are of the opinion that constantly rising costs of inputs and fuel prices will contribute to the sustainability of small cars. 18. Small cars prove sufficient to meet the family needs of Indian middle class and therefore, small cars remain preferred choice of Indian middle class. 212 This fact was endorsed by 82 percent of the total respondents. Therefore it can be concluded safely that small cars are going to be sustainable in Indian car market. 19. Over the years a status consciousness has developed among Indian middle class and to fulfill this need they prefer to buy small car as most of them can not afford to buy a big car. Therefore, small cars remain a preferred choice of Indian middle class. 82 percent of the total respondents have endorsed this view and therefore it can be concluded that small cars will be sustainable in Indian automobile sector. 20. Indian middle class consumer is buying a car for either as a necessity or for comfort. The financial constraint therefore does not permit him to have the luxury of expensive, out of reach big cars. 82 percent of the total respondents of this study are of the same opinion. Looking to large base of middle class population in India, it can safely be concluded that small cars are going to be sustainable in Indian car market. 21. Parking of cars at residence is proving a difficult proposition now-a-days. Indian middle class resides normally in compact houses, parking space is in these houses is limited or non existent. In such conditions Indian middle class finds it is more comfortable with small cars. 83 percent of the total respondents acknowledged this fact and endorsed that the parking convenience at residence induces middle class to buy a small car. Thus it is concluded that small car will be sustainable in Indian car market. 22. Family and peer pressure often plays an important role in making buying decision of a vehicle . In case of Indian middle class this pressure induces them to buy small car. 68 percent of the total respondents were of the opinion that this pressure nduces the Indian middle class to buy the small cars. Therefore, small cars will remain a preferred choice of Indian middle class. 213 23. Working women in general and from middle class in particular prefer to buy a small car due to driving and parking comforts offered by such cars. Therefore, small car is a preferred choice of Indian Middle class working women. About 84 percent of total respondents have endorsed this fact. As the number of middle class women employees is on increase continuously, it can be concluded that small cars will sustain in the Indian automobile sector. 4. The focus of current middle class families is more on spending and enjoying life. Their personal disposable income has also increased substantially. The desire to lead a conferrable life is motivating them to buy a car, and with the financial constraint more then often it is small car. Therefore, popularity of small cars is increasing. 80 percent of respondents have shown their agreement that desire to lead comfortable life among middle class will contribute to the sustainability of small cars. 25. Of late Indian middle class has become status conscious. One of the simple ways to exhibit the status consciousness is to buy a car. Therefore, more and more middle class people are embarking upon the decision to buy a car. This fact is going to contribute to the sustainability of small cars in Indian automobile sector. 83 percent of the total surveyed respondents have expressed their agreement to this. 26. Number of middle class people is on continuous increasing in Indian, since small car is a preferred choice of this segment, it can be concluded that small car will sustain in Indian market. This view has been endorsed by 81 percent of the total respondents. 7. A very small car launched by Tata Motors is not sustainable in Indian automobile sector as 82 percent of the respondents have expressed their opinion against Nano it is perceived as not safe and stable. 28. Tata Motors Nano is not preferred by Indian consumers in spite of being low price and more fuel efficient, as almost 97 percent of the respondents have 214 expressed their agre ement to this. Thus price of car and fuel efficiency of it, are not only the factors taken into consideration by Indian consumers while making purchase decision for cars. Their decisions are governed by other factors also like safety, features, driving comfort, status, convenience, etc. 29. Nano is not even preferred by Indian consumers as suitable for â€Å"† Only for City use† car.. 91 percent of the respondents have expressed this view. 30. Nano is not a preferred choice of Indian consumers, neither as a first car nor as a second or additional car. 88 percent of respondents have disown it as their choice as a first car and 93 percent of respondents have disown it as their choice as second or additional car. 31. Tata Motors Nano car was positioned as a better alternative for two wheeler. However those who are using two wheelers for their personal and family use and can afford to buy at least a small car are also having hesitation in buying Nano. 93 percent of the respondents have that they would not like Nano to take out their family instead of scooter or a motor bike. Thus it can be concluded that Tata Motors Nano has lost it’s initial charm and hype created in Indian car market. 32 Out of the total surveyed respondents (1500) , 1271 respondents have acknowledged that they are using small car ,remaining of respondents said they are not using a small car. This implies that Indian car market scene is still dominated by small car. 33. 79 percent of the respondents those using small car have expressed their satisfaction with a small car. Remaining 21 percent of respondents were not satisfied by with the small car. This very high satisfaction level with the users, is clear indication of sustainability of small car in Indian market. 34. 83 percent of the total respondents have acknowledged that they would like to recommend the car currently being used by them to the prospective buyers. This again shows that most of the car users are satisfied with their 215 present car, whether big or small, and they would like to recommend the same to the prospective buyers. This study has already established the fact that the sale of small car is dominating, this response further support the sustainability of small car in Indian market. 35. This study also reveals that 73 percent of the respondents have expressed their opinion that small car will be the preferred choice of Indian Middle Class and will sustain in Indian car market. 6. For this study the questionnaire was so designed to get a clear idea about the preferences, choices, socio- economic issues, financial constraints, influencing factor of government actions and policies, consumer profiles etc. Since the study covers interest of all stake holders of Indian automobile sector, the recommendations are grouped under the following†¢ Recommendations for the car and auto component manufactures. †¢ Recommendations fo r auto finance organizations. †¢ Recommendations for policy planners- †¢ Recommendations for prospective car buyers. One important finding coming out of this study, which can change significantly the dynamics of Indian business, is shift in the consumer profile. Though the urbanization is taking place at a very high rate, it is the consumption of Rural India which is increasing at faster rate then Urban India. There for the recommendations for the basis of shift in consumer profile are grouped together, for the four segments of stake holders as specified above. 216 6. 2. 1 Recommendations for the car and auto component manufactures1. The fuel efficiency is one of the prime concerns of the car users and therefore it is recommended that the future car engine designee should be based on fuel efficiency and note on high horse power. 2. The availability of repair facility is having influence on buying decision, and therefore it is recommended that the car manufacturer should address this requirement before introducing any high technology based models of small cars for Indian market. 3. The study reveals that the small car is preferred by working women. Introduction of some variance of the car models having â€Å"Women friendly accessories† will attract the women customers. 4. The cost of the spare parts is of concern of car users. To boost the sale of their product it is suggested that the auto component manufacturers, open their dealer networks and service outlets to meet customer’s requirements directly. This is already in practice for car batteries, tyers etc. The Auto electrical segment can also use this. 5. The study reveals that there is shift in consumer profile. The consumer in he rural area is having more stakes in consumption. Currently the car designs are for the urban users. It is recommended that to take advantage of this shift some variance of car models can be designed to attract rural customers. 6. The Tata Motors Nano car is having low price and fuel efficient engine, but as the study reveals it is not accepted by consumers due to various issues like safety, durability, not suitable for long distance travel etc. It is recommended that car manufacture should take a note of this in designing the future models. They are advised to conduct the extensive survey of consumers, particularly, of Nano users, that why a small car launched in Indian car market with a big fan fare could not pick-up and lost its charm in a very short span of time, so that they can revive Nano as per expectations of public and can make it a great success in Indian car market. 217 7. Although 79 percent of the small car users have expressed their satisfaction with the small car being used by them, but 19 percent of the respondents have also expressed their dissatisfaction with the small car which can not be termed as insignificant from any yardstick. Small car manufacturers are advised to develop a suitable mechanism to identify such dissatisfaction and must take concrete steps to overcome their dissatisfaction. 6. 2. 2 i. Recommendations for auto finance organizations. One of the findings of the study is that financing of car purchase is key driver of auto industry. In the discussions it is felt that, as the disposable income is low in the beginning of the career and increases with the passes of time the initial Equated Monthly Installments (EMIs) are proved heavy and burdensome on the purchasers. ii. It is therefore, recommended that auto finance companies can adopt a model of financing in which monthly payment in the initial period can be low, with a gradual increase afterwards. 6. 2. 3 Recommendations for government and policy planners(i) The constantly increasing fuel prices on the one hand support the choice of small car but on the other hand the cost conscious consumer may stop shifting from two wheelers to car. The government, therefore, can take suitable policy decision to offset the impact of increased fuel price by reduction of other taxes and duties on fuel. ii) The study reveals the concern of the parking and traffic congestion on roads. It is recommended that â€Å"Town Planers† and policy makers in the government should suitably address these problems. Looking to the shortage of parking area in the city following solutions can be considered(a) Providing high-rise parking setups with lifts. 218 (b) Parking plazas out side city, with rapid transport system conne ctivity to business areas. (c) Making it mandatory to use roof tops for parking, like basement is used of high-rise buildings. (d) The traffic congestion on road, especially in cities, is often because of non adherence to the driving discipline by users. The traffic management system, therefore need to be made more efficient, active and accountable. (iii) To further boost automobile sector, more reforms in this sector are required, Since the Auto Policy published in 2002, is already more then a decade old a working group of experts should be asked to come out a new policy frame work, taking into consideration the current status and challenges. 6. 2. 4 Recommendations for prospective car buyers. (i) From this study one fact has come out clearly that, currently many models with many variances in each model, are available for a buyer. It is therefore recommended that in selecting a car the buyer should carefully evaluate the technical specifications, and match, the same with his needs. (ii) There are different schemes with different auto finance organizations. With a careful study of the schemes available at the time of car purchase, substantial saving in car financing can be obtained. (iii) Tata Motors Nano car is not favored by majority of the respondents, due to their perceptions, related to safety, stability, status symbol etc. However the manufacturer is continuously working to rectify these concerns. For the buyers having low disposable income, it is therefore recommended that at least considering the very low price of this car, the current model available at the time of purchase can be once again technically evaluated (iv) The government policies for protection of environment are also influencing the engine type and the fuel used in a car. It is therefore 219 recommended that buyer should select a model which is having futuristic technology engine. This study reveals the fact that the ‘Rural Market’ of India is growing more rapidly then ‘Urban Market’. The perception of car manufacturing industry as well as policy planers with the government in India has considered car as a commodity for urban population. This sift in the consumer profile if taken into serious consideration can lead to following recommendations6. 2. 5. 1Recommendations for the car manufacturesi. The interior design of the cars for the future models can be reviewed, and new models or at least some variants of new models can have features suitable for rural buyer. To give examples the long front seat of retro models can be reintroduced, the capacity of petrol tank can be increased etc. ii. The topographic requirement of rural area can be considered for technical specifications, of the cars e. g. wheel size, road clearance etc. to make it more acceptable in rural India. It is necessary to provide additional protection against dust to the vital elements, like fuel injection systems, carburetors, ignition system etc. iii. It is recommended that car manufacturers explore the possibility of introducing â€Å"Four Wheel Drive† system in small car as well. iv. The Personal car sales- net work currently focuses more on urban India, a shift is recommended in this approach. v. It is recommended that, after sale service net work is to be extended to rural area. Since the area to be serviced will be very large, a module having a central workshop with mobile service vehicles attached to it can also be considered. 220 vi. For the manufacturer like Maruti having major stake in small car segment, it is recommended that they can develop a system through which some selected fuel outlets can be used for providing authorized repair service by tanning the staff of fuel outlet. . 2. 5. 2 Recommendations for auto finance organizationsi. The current system of Equated Monthly Installments, is meeting the requirements of urban consumers which are generally fixed monthly income employees. The earning pattern of the rural consumers is different as it is seasonal. Therefore it is recommended that schemes where the option of repayment in unequaled installments, with a rider to make the complete repayment in a predefined period can be introduced. ii. The cooperative banks are generally very strong in rural India. It is recommended that captive auto finance companies can start exploring the possibilities of working with these banks. 6. 2. 5. 3Recommendations for policy plannersThe growth in auto industry segment works as a catalyst for the entire manufacturing sector. This growth is meeting the two very important key objectives of the government e. g. Improved GDP and more employment. It is therefore recommended that the policy planners in government should design the policies which can boost the sale of cars (small cars) in Indian ruler market.

Obesity Is A Real Problem - 1069 Words

In today s society, obesity is becoming more and more acceptable. However, obesity is a real problem, not to be ignored. With the help of healthy foods, working out and exercising self-control muscles, obesity can be obliterated. Obesity is an epidemic, and obese people need help to combat this horrible condition. Together, we can get this country back to a healthy weight. Everyone knows that vegetables are good and eating in excess is bad, then why is America the most obese country? From an early age, children are biased to vegetables due to their unpleasant taste. Often, those children grow up and never learn how wonderful vegetables truly are. We ve all heard it, finish your veggies, drink your milk, eat your meat so you can†¦show more content†¦Many healthy foods give off a gross vibe; kale is bitter, celery is taste-less, brussel sprouts are disgusting. Occasionally, healthy foods refuse to be made tasty, but often they are delicious when made properly. Broccoli can be topped off with a little cheddar cheese to be made palatable, chicken breasts are beautiful when baked with garlic salt and with a swipe of butter. Celery becomes a fun snack when dipped in protein-rich nut butter. Cauliflower can be turned into a DIY pizza crust with a little preparation. In regard to the time issue while cooking food, there are actually many solutions. Pr e-cut fruits, frozen vegetables, bagged salad kits, and 5-minute rice are all excellent options when wanting to eat healthy in a jiffy. Another food-hack to quick and healthy food is utilizing a crock-pot or oven. Throw a sweet potato in an oven on low overnight and in the morning it will be baked thoroughly. These are just a few examples of options for eating healthy whilst trying to lose weight. While cheap junk foods seem like a quick and easy snack, fruits and veggies are much better alternatives. In today s society, working out seems like a burden. Exercising has so many benefits beyond the physical: working out can improve mood, increase energy, AND shed some pounds. Of course, there are many reasons given against working out.I m too busy. The gym is really expensive. Gym rats judge